In
the absence of the Chair and Vice-Chair, the Chief Officer
(Governance) explained the requirement for the Committee to
nominate a Chair for the meeting, based on the criteria set out
within the Constitution. As the only
eligible Member, Councillor Arnold Woolley accepted and this was
agreed by the Committee.

John
Herniman explained the approach by
Wales Audit Office (WAO) to work with authorities on a rotational
basis which meant that this would be the final meeting attended by
Amanda Hughes. She was thanked by
the Chairman for her work and Matthew Edwards, who would now be
working with the Council, was welcomed.
On behalf of officers, the Chief Executive spoke about the
continuation of positive, professional working relationships with
the WAO.

RESOLVED:

That Councillor Arnold Woolley
be appointed Chairman for this meeting.

Councillor Woolley chaired the
meeting for the remainder of the items.

33.

Declarations of Interest (Including Whipping Declarations)

Purpose: To receive any
Declarations and advise Members accordingly.

Decision:

Councillor Glyn Banks declared
a personal and prejudicial interest on agenda item 11
‘Implementation of Contract Procedure Rules’ as he was
a contractor on the Council’s approved list and would leave
the room for this item.

Councillor Ian Dunbar declared
a personal interest on agenda item 4 ‘Internal Audit Progress
Report’ as he was a governor of Connah’s Quay High
School which was mentioned on Appendix E.

Minutes:

Councillor Glyn Banks declared a personal and prejudicial
interest on agenda item 11 ‘Implementation of Contract
Procedure Rules’ as he was a contractor on the
Council’s approved list and would leave the room for this
item.

Councillor Ian Dunbar declared a personal interest on agenda
item 4 ‘Internal Audit Progress Report’ as he was a
governor of Connah’s Quay High School which was mentioned on
Appendix E.

The
Interim Internal Audit Manager presented the update on progress of
the Internal Audit department including changes to the audit plan,
action tracking, performance indicators and
investigations.

Following concerns raised at the previous meeting, senior
officers were in attendance to share an overview of the actions and
safeguards taken in response to the red review of care provider
overpayments. A reminder was given of
the key findings to the audit which had been undertaken at the
request of Social Services.

The
Chief Officer (Social Services) acknowledged the overpayment as a
serious error mainly arising from (i)
the arrangement of a care package without the necessary contracts
and (ii) the systematic error in failing to update the care and
support plan. Whilst this was primarily
an error on the part of the Council, the responsibility of the
provider was also recognised. An agreed
plan with the provider to repay the full amount over five monthly
instalments was on track for completion. Internal Audit had worked with the team to put in
place a range of safeguarding measures involving the checking of
provider payments overseen by a panel, the completion of guidance
on procedures and the verification of care plans. The work of the Task & Finish Group -
established to improve governance arrangements as a result of this
issue - was progressing well and was due to conclude at the end of
April 2017. Until then, the Financial
Assessment team would ensure that invoices were not processed for
payment until details were cross-checked with the PARIS
system. An additional amount of
£68K from the Health Board towards the cost in supporting the
service user was being received in instalments and would be fully
met by the end of the financial year.

The
Senior Manager (Safeguarding & Commissioning) gave assurance on
agreed actions implemented to strengthen procedures such as checks
carried out by the Financial Assessment team, the rotation of
officers to different roles to help identify issues and
authorisation limits on invoices.

The
Chief Executive was satisfied that actions on this individual case
were progressing, without risk to the care provider, and that there
was demonstrable evidence that the system controls were now in
place.

Councillor Ian Dunbar spoke about the significance of the
overpayment to the single provider. The
Chief Executive reaffirmed that this was an error and not a case of
any fraudulent behaviour. The quality
of services of the care provider was not in question and repayment
terms had been agreed and were in place. Speaking in agreement, the Chief Officer (Social
Services) said that the Contract Monitoring team had confirmed
there was no financial risk and that the safeguarding measures,
along with any additional findings from the Task & Finish
Group, would ensure correct use of the PARIS system.

Councillor Glyn Banks said that this matter did not detract from
the excellent work of Social Services.
On the actions being implemented, the Senior Manager acknowledged
the challenges within team capacity in reviewing other learning
disability payments as a ...
view the full minutes text for item 35.

That the Committee note the
status of the 2016/17 mid-year summary of the strategic risks of
the improvement priorities of the Council; endorsing the successful
management of the risks.

Minutes:

The
Corporate Business & Communications Executive Officer presented
the position statement on the strategic risks contained within the
Council’s 2016/17 Improvement Plan.

The
current assessment showed a significant reduction in the level of
risk with 88% reported as either moderate or minor/insignificant,
demonstrating effective risk management during the
period. Although the six current red
risks were being monitored, most involved factors outside the
control of the Council or were due to financial
challenges. Details were given on the
National Procurement Service (NPS), the only risk which had
increased in significance.

In
response to Councillor Haydn Bateman, the Chief Officer
(Governance) provided clarification on the NPS run by Welsh
Government (WG) which sought to offer procurement savings to
councils in Wales through a collaborative approach. Following an initial period, agreement had been
reached with WG on the best use of procurement frameworks to
achieve the best value for money in the interests of the
Council. On a query from Councillor Ian
Roberts, the Chief Officer spoke about disadvantages of a national
framework and the effective joint procurement service currently in
place with Denbighshire Council.

Councillor Ian Dunbar asked about funding for flood alleviation
schemes and was informed that capital funding had been made
available for 2017/18.

Councillor Bateman made reference to the potential effects
arising from the increased work programme on the Welsh Housing
Quality Standard (WHQS). The Chief
Executive responded that there was a downward trend on this
risk. Risk was inevitable given the
scale of the programme and its implementation being at a
mid-point. The risk remained open due
to the potential for contractor under-performance, however this
would reduce as the programme neared conclusion.

(a) That the Committee
endorses the updated Code of Corporate Governance for adoption;
and

(b) That the Committee
supports the process for the preparation of the Annual Governance
Statement.

Minutes:

The
Chief Executive introduced a report on the updated Code of
Corporate Governance and preparation process for the next Annual
Governance Statement (AGS). Work on the
AGS was underway and would be presented in June 2017 in its new
format which was based on the national framework and
guidance.

The
Corporate Business & Communications Executive Officer spoke
about the role of the Corporate Governance Working Group in
reviewing the national guidance on the Code. The new format for the Code had been simplified
and provided a framework to inform the AGS. As part of preparations for the AGS, the usual
questionnaire had been circulated to seek the views of Overview
& Scrutiny Chairs and Chief Officers.

Councillor Glyn Banks commended the approach. The Chairman recorded the thanks of the Committee
to those on the Working Group.

RESOLVED:

(a) That the Committee
endorses the updated Code of Corporate Governance for adoption;
and

(b) That the Committee
supports the process for the preparation of the Annual Governance
Statement.

38.

Grants Audit Work 2015/16 - Verbal Update

To receive a verbal update on Grants audit
work 2015/16.

Decision:

That the verbal update be
accepted.

Minutes:

The
Corporate Finance Manager introduced a verbal update by the Wales
Audit Office (WAO) on grants audit work for 2015/16 as previously
requested by the Committee, in advance of receiving the final
report at the next meeting.

Amanda Hughes advised that all claims had been audited except
for one which was on track for completion the following
month. She referred to concerns on
previous grant audits and was pleased to report improvements in the
quality of grants with the required checklist completed in each
case. Of the 12 grants audited by
31 December 2016, seven were unqualified, three qualified, one
amended and one qualified and amended, indicating a positive trend
from previous statistics.

The
Chief Executive said that previous inconsistency in the use of the
checklist had been frustrating; the update demonstrated positive
progress in implementing the recommendations.

The
Corporate Finance Manager introduced the Annual Audit Letter from
the Wales Audit Office (WAO) which summarised the key messages
arising from the Auditor General for Wales’ statutory
responsibilities. He advised that the
accounts action plan used in previous years to address issues
highlighted by WAO was not required this year, as the issues now
being raised were service specific. A
post-project learning meeting had taken place enabling officers to
work with WAO colleagues to make further improvements.

In
acknowledging the progress made, John Herniman of WAO reported a significant improvement
in issues identified this year and highlighted the earlier deadline
required for closure of the accounts.

On a
query by Councillor Haydn Bateman, Mr. Herniman explained the need for the Council to
investigate any potential liabilities from the former waste
disposal sites to establish if financial provision was required
within the accounts. The Chief
Executive said that this was an ongoing technical accounting issue
which did not pose any public risk. The
Finance Manager advised that complex testing work was being carried
out at the sites and that until its conclusion, £250K had
provisionally been set aside in the Capital Programme as a
contingency.

The
Finance Manager - Technical Accountancy presented the draft
Treasury Management Strategy 2017/18 for review and discussion,
seeking recommendation to Cabinet. Also
presented was the draft Treasury Management Mid-Year report for
2016/17 prior to consideration by Cabinet, and a quarterly update
for information.

Attention was drawn to key areas of the Strategy, although there
were no significant changes from the 2016/17 Strategy. There was a continued focus on reducing cash
balances and increasing borrowing. It
was noted that the borrowing limits under Section 9 of the Strategy
would be slightly reduced prior to submission to Cabinet and
Council.

Councillor Haydn Bateman sought clarity on the advice given by
Arlingclose on interest
rates. The Finance Manager said that
this was in line with expert predictions and reflected the
potential impact of leaving the European Union and economic
uncertainty in global markets. On the
investment portfolio, a range of factors were involved such as
market conditions, security and yield, however the priority was to
maintain liquidity.

In
response to questions from Councillor Glyn Banks, the Finance
Manager said that the variations in total investment figures over
the six month period were due to cash fluctuations during the year
i.e. grant funding received and spent during that time. On debt rescheduling, she explained that this was
an expensive option and agreed to a request to share examples
showing repayments and savings made. On
further queries, the Strategy allowed for flexibility to ensure
borrowing at the right time. The
approach to the investment of money borrowed in advance of need was
set out and future long-term borrowing requirements may involve the
use of ‘forward starting loans’.

RESOLVED:

(a)
That the Committee recommends the draft Treasury Management
Strategy 2017/18 to Cabinet on 14 February 2017 and confirms
there are no matters which it wishes to raise;

(b)
That the Committee recommends the draft Treasury Management
Mid-Year Report 2016/17 to Cabinet on 14 February 2017 and
confirms there are no matters which it wishes to raise;
and

That the Committee is assured
that the costs and processes for mobile phones are
satisfactory.

Minutes:

The
IT Infrastructure Manager presented an update report showing a
breakdown of cost and use of mobile phones in the Council for
2015/16 compared with information previously shared for
2014/15.

The
position in March 2016 showed a reduction in the number of mobile
phones and costs, with further reductions expected following the
introduction of new contractual arrangements involving inclusive
tariffs. The Mobile Phone and
Smartphone Policy had been updated and approved, and the new
arrangements were expected to generate around £111K of
savings each year.

The
Chairman referred to concerns about the possible use of mobile
phones for purposes other than work.
The Manager gave assurance of regular monitoring of usage across
portfolio areas. The Chief Officer
(Governance) said that high usage was not an issue due to the
inclusive minutes tariff.

Councillor Glyn Banks commended the terms of the new contract
and projected efficiencies. In
response, the Manager said that the full year savings could not be
given due to the period of transferring to the new terms between
August and November 2015, and the changing mobile phone
estate.

The
Chief Executive welcomed the improved cost controls, and observed
that cost and usage were low in comparison to similar sized
organisations where a large number of employees worked in a mobile
way. He gave a reminder that mobile
phones not only enabled work base and customer contact but also
supported lone working and personal safety.

Councillor Ian Dunbar said that the report addressed the
concerns previously raised.

RESOLVED:

That the Committee is assured
that the costs and processes for mobile phones are
satisfactory.

That the Committee endorses the
early progress in implementing the new CPRs and receives further
reports in accordance with its work programme.

Minutes:

The
Chief Officer (Governance) introduced an update on the
implementation of the Contract Procedure Rules (CPRs) with
particular focus on contract management, as requested at the
previous meeting.

Since approval of the CPRs in September 2016, only a small
number of contracts had been let and therefore there was limited
evidence at this stage to demonstrate how the CPRs were working in
practice. The initial findings of an
Internal Audit review of contract management across Flintshire and
Denbighshire Councils were shared and would form part of the
finalised report to be brought to a future meeting.

Tom
Booty, Programme Manager, Facilities, Assets & Housing at
Denbighshire County Council reminded Members that the CPRs had been
adopted in Denbighshire at an earlier stage and that bespoke
support was given to teams where issues had been
identified. In Flintshire, there was
good attendance at training sessions which were scheduled for
another six months.

Councillor Ian Dunbar asked about guidance for dealing with
sub-contractor issues which had been an area of
concern. Mr. Booty explained that
contracts were between the Council and main contractor whose work
was subject to quality monitoring whether directly or indirectly
through a sub-contractor. It was
therefore the contractual responsibility of the main contractor to
deal with any issues.

The
Chairman pointed out that whilst Members had accepted the need for
occasional use of sub-contracting, there were concerns about the
supervision of performance. Mr. Booty
said that the CPRS addressed this and that the procurement software
gave notification of the use of sub-contractors.

Members were advised that twice yearly update reports on the
implementation of CPRs had been scheduled in the Committee’s
Forward Work Programme.

Prior to the item, Councillor Glyn Banks left the room as he had
declared a personal and prejudicial interest, and he returned
following the vote.

RESOLVED:

That the Committee endorses the
early progress in implementing the new CPRs and receives further
reports in accordance with its work programme.

The
Internal Audit Manager presented the progress update report on
actions arising from previous meetings of the
Committee. Whilst the vast majority had
been implemented, the remainder were in progress.

(b)
That the Interim Internal Audit Manager, in consultation with the
Chair and Vice-Chair of the Committee, be authorised to vary the
Forward Work Programme between meetings, as the need
arises.

Minutes:

In
presenting the current Forward Work Programme for consideration,
the Interim Internal Audit Manager explained the deferment of the
annual report on external inspections to the meeting in June
2017.

The
Corporate Finance Manager advised that the report on the completion
of grant claims was scheduled for June 2017 if it was not available
by the March 2017 meeting.

RESOLVED:

(a)
That the Forward Work Programme be accepted; and

(b)
That the Interim Internal Audit Manager, in consultation with the
Chair and Vice-Chair of the Committee, be authorised to vary the
Forward Work Programme between meetings, as the need
arises.

45.

Arrangements for the post of Internal Audit Manager - Verbal Update

Decision:

That the verbal update be
accepted.

Minutes:

The
Chief Officer (Governance) reported on the recruitment process as
opportunities for a shared post with neighbouring councils had not
materialised. Given the nature of the
post, the advertisement would be open to both internal and external
candidates. Due to the forthcoming
election and subsequent changes to the Committee membership, the
recruitment process would be delayed until that stage to allow for
Member involvement.

The
Chief Officer said it was a shame that the co-opted member did not
wish to seek a further term and that a report would need to be
submitted to full Council on recruitment to this post.

The
Chief Officer took the opportunity to thank the Interim Internal
Audit Manager for her work and the improvements made to the
service. Councillor Ian Dunbar also
expressed gratitude for her help and support.

RESOLVED:

That the verbal update be
accepted.

46.

Local Government (Access to Information) Act 1985 - to consider the exclusion of the press and public

Decision:

That the press and public be
excluded from the meeting as the following item was considered to
be exempt by virtue of paragraphs 12 and 13 of Part 4 of Schedule
12A of the Local Government Act 1972 (as amended).

Minutes:

RESOLVED:

That the press and public be
excluded from the meeting as the following item was considered to
be exempt by virtue of paragraphs 12 and 13 of Part 4 of Schedule
12A of the Local Government Act 1972 (as amended).

The
Interim Internal Audit Manager introduced the findings of the
‘red’ assurance audit report on the Greenfield Valley
Heritage Park.

The
Chief Officers for Organisational Change and Planning &
Environment were in attendance to give further explanation on their
respective areas in addressing the audit recommendations where some
progress had already been made. In
acknowledging the importance of the site, the officers responded to
questions from the Committee and advised that the recommendations
were due to be implemented by the end of September 2017.

Following discussion, the Chief Executive agreed to provide the
Committee with an informal update on outcomes at a later
stage.